Home Title Lock Insurance Scam

Overview

Ads warn homeowners that criminals can steal their home's title and push them to buy "title lock insurance," but the FTC says this product is neither a lock nor insurance and won't actually prevent title fraud.

How It Works

Companies run scary ads claiming thieves can steal the title to your home, designed to frighten homeowners into buying "title lock insurance." According to the FTC, "title lock insurance" is not title insurance, which protects you against challenges to the title, like a lien you didn't know about

Red Flags

• Ads that claim thieves can easily steal your home's title and create panic to sell a product
• A service calling itself 'insurance' or a 'lock' that doesn't actually prevent fraud or restore a stolen title
• Marketing that conflates 'title lock insurance' with real title insurance
• Pressure to subscribe to paid monitoring instead of being told about free alternatives

Real Examples

• FTC consumer alert describing ads that tell homeowners thieves can steal their home's title and then pitch 'title lock insurance' as the fix
• Consumers commenting on the FTC's alert page describe seeing TV commercials that caused panic, with real estate lawyers telling them they'd never heard of an actual title-theft case

Where It Spreads

How to Protect Yourself

• Remember title fraud is a form of identity theft, not a product real insurance covers
• Check your property title for free through your state or county's land records office
• Sign up for your area's free title/deed change notification program if one is available, instead of paying a monthly fee
• Take a breath before reacting to scary ads "Stop. Take a breath. It's just a ploy to scare you." and research any company before paying

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